The Black Swan writer and famous economist Nassim Nicholas Taleb harshly criticized Bitcoin, commenting on all cryptocurrencies as “garbage”.
Cryptocurrencies have “done the opposite of their inflation hedge”
In an interview with CNBC on June 22, Taleb trashed cryptocurrencies like Bitcoin (BTC) due to shortcomings that suggest the industry is a ‘cult’. As Bitcoin’s anti-inflationary feature, Taleb claimed, it represents the fusion of a cult with a financial instrument unprecedented in the history of the financial world.
Taleb voices his skepticism about the ability of cryptocurrencies to serve as a practical trading tool and a hedge against inflation. In a CNBC interview, he said, “He did the opposite of his inflation hedge because it collapsed. For almost the first time in the history of the world, we have a cult with a financial instrument,” he said.
Nicholas Taleb ignores Bitcoin’s history
The famous author suggests that it is unreasonable to focus solely on his past performance. Instead, it emphasizes the importance of assessing the potential disadvantages and risks of an asset. Notably, he initially had a positive view of Bitcoin as a response to frustration with Fed policies. Later, this view was reversed due to terrorist activities in which cryptocurrencies are tools.
Taleb acknowledges that cryptocurrencies can be suitable for small transactions. However, at this point he is quoting some misconceptions. According to Taleb, Blockchain technology is not effective in facilitating large-scale money laundering contrary to popular belief. Indeed, a harsh criticism of cryptocurrencies is that they are viewed as money laundering tools. The famous economist takes sides with cryptocurrencies at this point.
Talking about the use of cryptocurrencies in money laundering, Taleb said, “The thing is, transactions can be good for small transactions or small amounts of money. But it’s not good for real money laundering because it’s so watchable,” he adds.
crypto power concentration
Taleb also expressed his concerns about the concentration of power among major players in the crypto space. He compared this to the transparency and influence that could be exerted on the Fed. He specifically described the impact of cryptocurrencies as a distraction. At one crucial point, it cast doubt on its long-term effects.
The popular author argued that cryptocurrencies, including Bitcoin, are encouraging central banks like the Federal Reserve to take a more proactive approach. He talked about the Fed’s upcoming developments, pointing to potential changes in response to the crypto phenomenon.
Taleb’s critical assessment of Bitcoin points to issues about Bitcoin’s practicality. At the same time, it brings to light ongoing concerns about stability and power density in the crypto ecosystem. cryptocoin.com In this article, you can take a look at Taleb’s statements made in the past years.
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